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Future Minimum Rents and Lease Payments
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Future Minimum Rents and Lease Payments Future Minimum Rents and Lease Payments
The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2040.

The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of September 30, 2024:
YearAmount
Remaining 2024
$143,307 
2025504,795 
2026458,284 
2027401,969 
2028335,214 
Thereafter852,553 
TOTAL$2,696,122 

Operating Lease Agreements

The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 16 other leases as of September 30, 2024. The Company’s operating lease obligations have expiration dates ranging from 2025 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value.

As of September 30, 2024, the present value of the remaining contractual payments of $695.5 million under the Company’s operating lease agreements was $366.6 million. The corresponding operating lease right-of-use assets amounted to $359.3 million.

During the three and nine months ended September 30, 2024, the Company recorded $1.4 million of impairment charges related to the right-of-use assets for ground leases at certain office properties. See Note 3 for details. The impairment charges are recorded within impairment loss on the Consolidated Statements of Operations.

The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of September 30, 2024:
Year
Lease Payments(1)
Remaining 2024
$10,402 
202541,662 
202640,615 
202738,895 
202837,145 
Thereafter526,754 
Total operating lease payments
695,473 
Less: interest portion(328,874)
PRESENT VALUE OF OPERATING LEASE LIABILITIES$366,599 
__________________ 
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date.
The following table summarizes rental expense for operating leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Variable rental expense$2,586 $2,691 $7,443 $8,870 
Minimum rental expense$11,507 $11,372 $34,140 $33,760 
Future Minimum Rents and Lease Payments Future Minimum Rents and Lease Payments
The Company’s properties are leased to tenants under operating leases with initial term expiration dates ranging from 2024 to 2040.

The following table summarizes the future minimum base rents (excluding tenant reimbursements for operating expenses and termination fees related to tenants exercising early termination options) for properties as of September 30, 2024:
YearAmount
Remaining 2024
$143,307 
2025504,795 
2026458,284 
2027401,969 
2028335,214 
Thereafter852,553 
TOTAL$2,696,122 

Operating Lease Agreements

The Company is party to long-term non-cancellable operating lease agreements in which it is a lessee, consisting of 12 ground leases, 10 sound stage leases, seven office leases and 16 other leases as of September 30, 2024. The Company’s operating lease obligations have expiration dates ranging from 2025 through 2067, including extension options which the Company is reasonably certain to exercise. Certain leases provide for variable rental payments based on third-party appraisals of fair market land value, CPI adjustments or a percentage of annual gross income. There are no notable restrictions or covenants imposed by the leases, nor guarantees of residual value.

As of September 30, 2024, the present value of the remaining contractual payments of $695.5 million under the Company’s operating lease agreements was $366.6 million. The corresponding operating lease right-of-use assets amounted to $359.3 million.

During the three and nine months ended September 30, 2024, the Company recorded $1.4 million of impairment charges related to the right-of-use assets for ground leases at certain office properties. See Note 3 for details. The impairment charges are recorded within impairment loss on the Consolidated Statements of Operations.

The following table provides information regarding the Company’s future minimum lease payments for its operating leases (including the impact of the extension options which the Company is reasonably certain to exercise) as of September 30, 2024:
Year
Lease Payments(1)
Remaining 2024
$10,402 
202541,662 
202640,615 
202738,895 
202837,145 
Thereafter526,754 
Total operating lease payments
695,473 
Less: interest portion(328,874)
PRESENT VALUE OF OPERATING LEASE LIABILITIES$366,599 
__________________ 
1.Future minimum lease payments for operating leases denominated in a foreign currency are translated to U.S. dollars using the exchange rate in effect as of the financial statement date.
The following table summarizes rental expense for operating leases:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Variable rental expense$2,586 $2,691 $7,443 $8,870 
Minimum rental expense$11,507 $11,372 $34,140 $33,760